FINANCIAL STATEMENT MODELLING WITH LATEST VERIFIED QUESTIONS AND CORRECT ASWERS GRADED A+
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Course
FINANCIAL STATEMENT MODELLING
Institution
FINANCIAL STATEMENT MODELLING
FINANCIAL STATEMENT MODELLING
WITH LATEST VERIFIED QUESTIONS AND
CORRECT ASWERS GRADED A+
Which formula is used to check that a Balance Sheet has been built correctly? - ANS-Total Assets = Total
Liabilities + Stockholders' Equity
How do you calculate Inventory Turns? - ANS-COGS / Inventory
...
FINANCIAL STATEMENT MODELLING
WITH LATEST VERIFIED QUESTIONS AND
CORRECT ASWERS GRADED A+
Which formula is used to check that a Balance Sheet has been built correctly? - ANS-Total Assets = Total
Liabilities + Stockholders' Equity
How do you calculate Inventory Turns? - ANS-COGS / Inventory
What is the last step in creating our debt paydown and interest schedule? - ANS-Interest Calculation
What happens if our cash available for mandatory debt paydown is negative? - ANS-We must draw on
the revolver
If no additional debt is raised and there are fixed, annual debt payments, what will happen to short-term
debt from year to year? - ANS-Stay the same
Which of the below accurately describes the revolver logic in our model? - ANS-Nike needs cash - draw
on revolver,
Nike does not need cash - pay down revolver if there is a balance,
Nike does not need cash - do nothing if there is no revolver balance
, Why is the revolver interest rate lower than our long-term interest rate? - ANS-It has higher seniority
What balance did we use for debt to calculate our annual interest expense? - ANS-Average of beginning
and ending balance of debt
What interest rate did we use for the interest income on our cash? - ANS-0.50%
What is the main source of circularity in our model? - ANS-The debt / interest schedule
What is the driver for the number of shares that we repurchase? - ANS-Projected P/E multiple,
The $ amount of shares to be repurchased,
Projected share price
How do you calculate Days Sales Outstanding? - ANS-Accounts Receivable / Revenue * 365
We can project prepaid expenses by assuming its percentage of... - ANS-Revenue
How do you calculate Net Working Capital? - ANS-Total non-cash current assets - Total non-debt current
liabilities
Depreciation is to PP&E as Amortization is to... - ANS-Intangible Assets.
We use this driver to project Capex: - ANS-% of revenue
When calculating the ending balance of a line item in a projected year, we reference last year's ending
balance as the beginning balance (T or F) - ANS-TRUE
Beginning Intangible Balance is $10 million; Amortization = $1.5 million; Additions = $0.75 million. What
is the ending balance? - ANS-$9.25 million
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